Idemitsu Kosan Co., Ltd. · TSE:5019

Idemitsu Kosan — Q2 FY2018 Earnings Presentation

34 slides from Idemitsu Kosan's earnings presentation, Nov 14, 2018

  1. Slide 1: Presentation on Results for the 2nd Quarter FY 2018

    Presentation on Results for the 2nd Quarter FY 2018 Idemitsu Kosan Co.,Ltd. November 14, 2018

  2. Slide 2: Table of Contents

    Table of Contents 1. FY 2018 2nd Quarter Financials (1) Overview (2) Segment Information 2. Reference Materials Copyright©2018 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 1

  3. Slide 3: Crude Oil Price Trends

    Crude Oil Price Trends <Monthly Dubai Crude Oil Price Trends and Assumptions for Performance Forecasts> (US$/Bbl.) FY 2018 2Q Average: US$73.2/Bbl. Assumption Announced on 8/14: US$70.5/Bbl. FY 2017 2Q Average: US$50.1/Bbl. FY 2017 Actual FY 2018 Actual 8/14 Assumption Apr May Jun Jul Aug Sep Oct No

  4. Slide 4: JPY/USD Exchange Rate (TTS) Trends

    JPY/USD Exchange Rate (TTS) Trends <Monthly JPY/USD Exchange Rate Trends and Assumptions for Performance Forecasts> (JPY/USD) FY 2017 1Q Average: JPY112.1/USD FY 2018 2Q Average: JPY111.3/USD FY 2017 Actual FY 2018 Actual Assumption Announced on 8/14: JPY110/USD 8/14 Assumption Apr May Jun Jul Aug S

  5. Slide 5: Overview

    Overview <FY 2018 2nd Quarter Results> ■Operating income increased by ¥47.6 billion year-on-year to ¥133.7 billion due to increased petroleum product margins and inventory valuation gains of ¥36.3 billion with increased crude oil prices ■Ordinary income increased by ¥64.2 billion year-on-year to ¥15

  6. Slide 6: 1. FY 2018 2nd Quarter Results

    1. FY 2018 2nd Quarter Results

  7. Slide 7: (1) Overview

    (1) Overview 1) Crude Oil / Exchange Rates (Units: $/Bbl., $/Ton, ¥/$) FY2017 2Q FY2018 2Q Change Crude Oil (DB FOB) 50.1 73.2 23.1 46.1% Crude Oil (Brent) 51.8 70.6 18.8 36.3% Naphtha Price (Customs) 465 645 180 38.7% Thermal Coal (NEWC) 81.8 103.4 21.6 26.4% Exchange Rate (TTS) 112.1 111.3 (0.8) (

  8. Slide 8: (2) Segment Information

    (2) Segment Information 1) Operating Income (Units: ¥ billions) FY2017 2Q FY2018 2Q Change Petroleum Products 31.2 76.8 45.7 146.6% (Excluding inventory impact) 37.1 40.5 3.4 9.1% Petrochemical Products 20.6 19.7 (0.9) (4.5%) Resources 32.8 36.1 3.3 10.1% Oil Exploration and Production 14.0 14.6 0.6

  9. Slide 9: (2) Segment Information: Analysis of Factors Affecting Operating Profits

    (2) Segment Information 2) Analysis of Factors Affecting Operating Profits (Year-on-year) (Units: ¥ billions) Increased Product Sales Margins and Volume/ Sales Price- Price- Volume related related Inventory Impact Increased Foreign Product Exchange Margins, Mfg. Fuel Exploration Others/ etc. Costs,

  10. Slide 10: 2. Reference Materials

    2. Reference Materials

  11. Slide 11: Table of Contents

    Table of Contents 1. Shareholder Returns 4. Sales and Production 2. Financial Reporting 5. Foreign Exchange (1) Net Sales by Segment 6. Market Conditions (2) Extraordinary Gains/Losses 7. Capacity Utilization at Refineries (3) Consolidated Balance Sheet 8. Number of Service Stations (4) Consolidated

  12. Slide 12: 1. Shareholder Returns

    1. Shareholder Returns (1) Dividends (per share) Interim FY End Total FY 2017 (Actual) ¥40 ¥40 ¥80 (Actual) ¥50 ― ― FY 2018 (Forecast) ― ¥50 ¥100 (2) Acquisition of Treasury Shares(as of November 9) ■Aggregate number of shares acquired 10,439,700 shares (5.02% of shares outstanding) ■Aggregate amoun

  13. Slide 13: 2. Financial Reporting: Net Sales by Segment

    2. Financial Reporting (1) FY2018 2nd Quarter Net Sales by Segment (Units: ¥ billions) FY2017 2Q FY2018 2Q Change Petroleum Products 1,294.0 1,656.6 362.6 28.0% Petrochemical Products 228.3 285.2 56.9 24.9% Resources 143.5 140.9 (2.6) (1.8%) Oil Exploration (20.9%) and Production 42.5 33.6 (8.9) Coa

  14. Slide 14: 2. Financial Reporting: Extraordinary Gains/Losses

    2. Financial Reporting (2) Extraordinary Gains/Losses (Units: ¥ billions) FY2017 2Q FY2018 2Q Change Gain on Sale of Fixed Assets 0.9 1.4 0.5 Gain on Sale of Affiliate Stock 0.0 0.2 0.2 Other 0.0 6.2 6.2 Total Extraordinary Gains 0.9 7.8 6.9 Loss on Sale or Depletion of Fixed Assets 0.8 0.7 (0.1) Im

  15. Slide 15: 2. Financial Reporting: Consolidated Balance Sheet

    2. Financial Reporting (3) Consolidated Balance Sheet (Units: ¥ billions) 3/31/2018 9/30/2018 Change 3/31/2018 9/30/2018 Change Cash and Deposits 88.4 71.8 (16.6) Payables 429.6 413.7 (15.8) Receivables 486.2 466.4 (19.8) Short-term Borrowings 305.9 394.6 88.7 Inventory 535.6 633.0 97.4 Other Curren

  16. Slide 16: 2. Financial Reporting: Consolidated Statement of Cash Flows

    2. Financial Reporting (4) Consolidated Statement of Cash Flows (Units: ¥ billions) FY2017 2Q FY2018 2Q Change CF from Operating Activities 136.3 9.1 (127.2) Net Income before Tax Adjustments 88.9 156.0 67.1 Depreciation Expense Increase in Sales Receivables 34.3 31.2 (3.0) and Inventory 24.0 (83.9)

  17. Slide 17: 3. Sensitivity

    3. Sensitivity (1) Impact of a US$1/bbl. Decrease in Crude Oil Prices on FY Earnings Decrease in refinery Petroleum ￥0.6 billion fuel costs, etc. Products Inventory impact (￥3.5 billion) (￥2.9 billion) Oil Exploration & Production (￥1.0 billion) (2) Impact of a 1 JPY/USD Depreciation on FY Earnings

  18. Slide 18: 4. Sales and Production: Sales Volume

    4．Sales and Production (1)Sales Volume (Domestic Fuel Oil Sales Volume: Non-consolidated) and KL,% ） （Units:Thousand KL,% ） FY 2017 2Q FY 2018 2Q Change Gasoline 4,048 3,970 (78) (1.9%) (Premium-Unleaded) 435 409 (26) (6.0% ) (Regular-Unleaded) 3,613 3,561 (52) (1.4% ) Naphtha 112 204 92 81.5% Jet F

  19. Slide 19: 4. Sales and Production: Petrochemical and Lubricants

    4．Sales and Production （2）Sales Volume (Petrochemical Products: Non-consolidated) ons, % ) (Units:Thousand tons, % ) FY 2017 2Q FY 2018 2Q Change Petrochemical Products-Total 1,626 1,741 115 7.1% (Basic Chemicals) 1,605 1,715 111 6.9% (Performance Chemicals) 22 26 4 18.3% KL,% （3）Sales ） Volume (Lub

  20. Slide 20: 4. Sales and Production: Oil and Coal Production

    4．Sales and Production （4）Oil Exploration & Production – Production Volume (including Gas) d BOED） （Units:Thousand BOED） FY 2017 2Q FY 2018 2Q Change Norway 37.1 28.5 (8.6) (23.1%) United Kingdom 4.9 0.0 (4.9) (100.0%) Total('000BOED) 42.0 28.5 (13.4) (32.1%) Total('000BOE) 7,595 5,160 (2,434) (32.1

  21. Slide 21: 5. Foreign Exchange (1) USD

    5．Foreign Exchange （1）USD Copyright©2018 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 18

  22. Slide 22: 5. Foreign Exchange (2) Norwegian Krone

    5．Foreign Exchange （2）Norwegian Krone Copyright©2018 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 19

  23. Slide 23: 5. Foreign Exchange (3) Norwegian Krone

    5．Foreign Exchange （3）Norwegian Krone Copyright©2018 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 20

  24. Slide 24: 5. Foreign Exchange (4) Australian Dollar

    5．Foreign Exchange （4）Australian Dollar Copyright©2018 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 21

  25. Slide 25: 5. Foreign Exchange (5) Australian Dollar

    5．Foreign Exchange （5）Australian Dollar Copyright©2018 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 22

  26. Slide 26: 6. Market Conditions (1) Crude Oil Prices

    6．Market Conditions （1）Crude Oil Prices (Dubai and Brent) Copyright©2018 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 23

  27. Slide 27: 6. Market Conditions (2) Gasoline, Crude Oil CIF

    6．Market Conditions （2）Gasoline, Crude Oil CIF (Prices and Spreads) Copyright©2018 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 24

  28. Slide 28: 6. Market Conditions (3) Diesel Oil – Crude Oil CIF

    6．Market Conditions （3）Diesel Oil – Crude Oil CIF (Prices and Spreads) Copyright©2018 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 25

  29. Slide 29: 6. Market Conditions (4) Paraxylene, Naphtha

    6．Market Conditions （4）Paraxylene, Naptha (Prices and Spreads) Copyright©2018 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 26

  30. Slide 30: 6. Market Conditions (5) Styrene Monomer, Naphtha

    6．Market Conditions （5）Styrene Monomer, Naptha (Prices and Spreads) Copyright©2018 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 27

  31. Slide 31: 7. Capacity Utilization at Refineries

    7．Capacity Utilization at Refineries Copyright©2018 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 28

  32. Slide 32: 8. Number of Service Stations

    8．Number of Service Stations Copyright©2018 Idemitsu Kosan Co.,Ltd. All Rights Reserved. 29

  33. Slide 33: Precaution statement about forecasts

    Precaution statement about forecasts Any information about forecasts for the Company’s operating results, management strategy and management policy contained in this documents other than historical facts is prepared, according to judgments made by the top management of the Company based on informati

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